The Net profit zoomed to Rs 10.45 crore, up from Rs 7.30 crore in the same period last year, and cash profit was 53 per cent higher at Rs 16.40 crore.

For the third quarter ended December 31, 1998, the company posted a net profit of Rs 3.7 crore, against Rs 2.05 crore during April-December last year.

"Robust growth in engine supplies to Punjab Tractors, which shot up by 41 per cent to 17,475 units during the first nine months, has been the principal factor driving the company's performance," Swaraj Engines has said.

Sales turnover during the period went up by 49 per cent to Rs 87.7 crore, from Rs 58.79 crore in the same period last year. During the third quarter, total revenue increased to Rs 31.26 crore, from Rs 16.91 crore in the corresponding period last year.

Gross profit rose 57 per cent to Rs 18 crore in the firstthree quarters, and the pre-tax profit increased to Rs 14.46 crore, from Rs 9.5 crore.

"Increased capacity utilisation, favourable product mix and tightly leashed expenditure has resulted in operating margin rising to 20.5 per cent from 19.5 per cent last year," the company said.

Interest charges were higher at Rs 1.6 crore, while provision for depreciation increased to Rs 1.95 crore from Rs 1.09 crore in the first nine months. The company has provided Rs 4 crore for corporate tax, which during April-December last year stood at Rs 2.3 crore.

The company is expanding its machine shop capacity from 33,000 engines to 42,000 engines with an investment of Rs 38 crore. The expansion is likely to be completed in the next six months. The annualised earnings per share for the nine-month period stood at Rs 33.66.